Macau’s Gambling Revenue Soars, Anticipating a New Era of Gaming Concessions

Macau, the world’s most famous gambling destination, has seen a tremendous increase in gaming income, hitting a stunning MOP80.14bn (£7.82bn/€9.13bn/$9.94bn) in the first half of the year, a phenomenal 205.1% increase over the previous year. However, the temporary closure of casinos owing to Covid-19 regulations had a negative impact on the 2022 results. Following massive demonstrations over the government’s rigorous “zero-Covid” policy, these restrictions were later loosened. The gaming industry is primed for additional growth and development as Macau enters a new chapter with the issuance of gaming concessions.

In an encouraging turn of events, income earned in the first six months of 2023 significantly exceeded the previous year’s MOP26.27bn, demonstrating Macau’s gambling sector’s robust rebound. The closure of casinos had a severe impact on the business in 2022, but with limitations eased, Macau had a rapid comeback, catapulting its income to record levels.

The loosening of Covid-19 measures has been critical in reviving Macau’s gambling business. Visitors from outside China are no longer subject to quarantine, and the number of flights into China is no longer limited, improving accessibility and encouraging tourism. These initiatives have likely contributed to the increase in gambling income and have revived Macau’s attraction as a top entertainment and gaming destination.

June, a major month for Macau, saw revenue of MOP15.21 billion, representing a phenomenal 513.9% growth over the previous year. However, this result represents a 2.3% decrease from the previous month’s income of MOP13.57bn. Although monthly revenue changes are to be expected in a volatile market like gambling, Macau is on a good overall trajectory, underpinned by constant year-on-year growth.

The area announced the start of new concessions in June, ushering in a new era for casino businesses in Macau. Seven applications competed for these lucrative concessions, including long-standing incumbents Galaxy Entertainment Group, Las Vegas Sands, MGM Resorts International, Melco Resorts, SJM Resorts, and Wynn Resorts, as well as Genting Malaysia. Genting’s opportunity was squandered when the incumbent six Macau operators were chosen.

The new concessions, which went into effect on January 1st, will define Macau’s gambling environment until December 31st, 2032. This prolonged timescale creates a stable and welcoming climate for operators to invest, innovate, and cultivate new growth opportunities. With their positions secured, the incumbents are well-positioned to harness their experience and contribute to the long-term development of Macau’s casino business.

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